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I doubt that there really is a "mass market price", people buy stuff that is more expansive than $300. The PS3 doesn't sell because people don't think that it worths that much. They are not interested in it enough.


They definitely won't steal many sales from the 360. Now anyone who takes the price into account, buys a 360. If they will cut the price, the 360 will still be cheaper, so people who consider the price first, will still buy the 360.